By Collins Mtika

Malawi has taken a significant step to address the growing threat of climate change by officially ratifying the Agreement for the establishment of the African Risk Capacity (ARC), a specialized agency of the African Union. 

Formalized on November 15, 2024, this landmark decision highlights Malawi’s commitment to improving its ability to manage natural disasters, particularly those exacerbated by global warming. 

Established in 2012, ARC provides innovative disaster risk management solutions under the African Union framework. Its primary mission is to equip African nations with tools to better anticipate, plan for, and respond to extreme weather events. 

At the heart of ARC’s approach is the use of parametric insurance products, which deliver rapid financial assistance during crises such as droughts, floods, and tropical cyclones. 

For Malawi—an agriculture-based economy frequently disrupted by such events—ARC offers a critical opportunity to strengthen resilience and safeguard vulnerable populations.  

In recent years, the country has faced severe droughts that slashed maize production and catastrophic floods that displaced thousands, undermining food security and economic stability. 

By ratifying the ARC Agreement, Malawi is taking proactive measures to reduce these risks and protect its citizens. 

During a ceremony at the African Union Commission headquarters in Ethiopia, Kester Kaphaizi, Malawi’s Ambassador to Ethiopia and Permanent Representative to the African Union and UNECA, formally submitted the instrument of ratification. 

“The benefits of ARC drought insurance policies will complement our government’s efforts to alleviate hunger and food insecurity,” he stated, emphasizing the practical advantages of ARC’s parametric insurance model. 

This ratification strengthens Malawi’s disaster risk management systems, focusing on mitigating hunger and bolstering economic stability in the face of climate-related shocks. 

Representatives from the African Union and ARC welcomed the decision as a significant milestone. Professor Hajer Gueldich, Legal Counsel of the African Union, described it as a clear demonstration of Malawi’s dedication to tackling climate challenges. 

ARC officials also acknowledged Malawi’s ongoing participation in initiatives like the drought insurance program and expressed optimism about expanding this collaboration in the future. 

Following the ratification, Malawi will work closely with ARC to develop comprehensive disaster risk management strategies tailored to its unique vulnerabilities. This includes leveraging ARC’s insurance products for timely disaster response and equipping national and local agencies with tools for effective preparedness.

These efforts will complement broader initiatives to combat hunger and improve resilience to disasters. 

Malawi’s ratification comes at a time when African nations are increasingly grappling with severe and frequent extreme weather events. 

Across the continent, prolonged droughts, destructive floods, and erratic rainfall are disrupting agriculture, water resources, and livelihoods. ARC’s innovative model—transferring weather-related risks away from governments to allow them to focus on building long-term resilience—is more critical than ever. 

For Malawi, this partnership aligns disaster preparedness with sustainable development goals, ensuring vulnerable populations are better protected from future crises. 

However, challenges remain. Sustaining the financing of insurance premiums will require long-term commitment, and ARC’s resources may not fully address slow-onset or broader climate risks. Additionally, the effectiveness of disaster response plans will depend on strong coordination between Malawi’s national institutions and ARC. 

By ratifying the ARC Agreement, Malawi has taken a decisive step toward greater climate resilience and disaster preparedness. This move not only protects its citizens but also serves as an inspiring example for other nations facing similar challenges. 

As climate change continues to reshape the African continent, Malawi’s leadership demonstrates how proactive measures can safeguard lives, livelihoods, and national stability.